Markets languish as heavyweights drag

Metal and auto shares slip

Markets continue to languish in afternoon trades following dismal GDP numbers. The Sensex, after opening in the negative zone on global cues, slipped to a low of 16,086. The index is now down 151 points at 16,161. Nifty is down 43 points at 4,908.

India's annual economic growth slumped in the January-March quarter to a nine-year low of 5.3% as the manufacturing sector contracted and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.

The growth rate was much lower than expected and was even below the lowest forecast in a Reuters poll that had produced a median of 6.1% from predictions ranging between 5.5% and 7.3%.

In Asia, Hang Seng is down 0.3% at 18,622. Shanghai Composite and Nikkei slipped around 1% each as the Euro's weakness continued to worry investors.

BSE oil & gas index has slipped 1.7% to 7,456. Auto, capital goods, bankex and consumer durables indices have shed over 1% each. Meanwhile, BSE realty index managed to stay in the positive zone and was trading at 1,568.

ICICI Bank is the top loser among Sensex stocks and is down 4% at Rs 785. Along with heavyweight, Reliance, ICICI Bank accounts for a 83 points loss on the Sensex.

Auto shares were showing weakness. Tata Motors and Maruti Suzuki have dropped 3.4% each. Metal shares are in the red with Sterlite, Jindal Steel and Tata Steel dropping 1-2% each.

Meanwhile, Shares of Hindalco Industries and Reliance Power are trading higher after an empowered group of ministers (EGoM) on Wednesday gave the go-ahead to start mining at two coal blocks allotted to them, albeit with some riders. Hindalco has added 2% at Rs 116. NTPC, Bharti Airtel, Cipla and Coal India are up around 1% each.

Shares of Kingfisher Airlines tanked 4.5% to touch a new low in the morning trade after it reported that net loss during the January-March quarter widened to Rs 1,151.53 crore. Troubled air carrier Kingfisher Airlines' loss widened three-fold to Rs 1,151.53 crore in the fourth quarter of 2011-12 due to steep hike in fuel prices and sharp depreciation of the Indian rupee.

BSE market breadth is fairly negative. Out of 2,398 shares traded, 1,369 shares have declined while 914 shares have advanced in trades.